KUALA LUMPUR (March 27): Sime Darby Engineering Sdn Bhd (SDE) was ordered to pay Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) damages for claims in relation to a dispute over two fabrication yards. 

In a filing with Bursa Malaysia today, Sime Darby Bhd said its indirect unit SDE had on March 19, received a notification from the Asian International Arbitration Centre that its Arbitral Tribunal had issued its award to MMHE. 

It said that SDE is in the process of reviewing the award.

“The award is not expected to have a material effect on the earnings and the net assets of the Sime Darby Group for the financial year ending June 30, 2018,” the filing added.

To recap, SDE had signed an MoU with Petroliam Nasional Bhd and MMHE on May 27, 2011, over the sale of the Teluk Ramunia fabrication yard to Petronas for RM296 million and Pasir Gudang fabrication yard to MMHE for RM399 million.

The disposal prices would be settled in cash and subject to change, depending on the outcome of the due diligence to be performed on the assets.